Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Treasury conceded that there is a long way to go before accounting for the environment...
Conclusion
Treasury conceded that there is a long way to go before accounting for the environment is fully embedded within the spending review process and is on a level pegging with carbon emissions where there is a statutory budget-setting process. It said it needed to do more to ensure the guidance and the structures used reflect the natural environment, and would have to do a great deal of work at next year’s spending review “to try to cobble together the Environment Bill and the spending cycle”.50 Regulation of environmental law
Government Response
Not Addressed
HM Government
Not Addressed
The government agrees with the Committee’s recommendation. Target implementation date: April 2022 5.2 HM Treasury recognises its important role in supporting the delivery of the government’s climate and environmental objectives. Both the Stern and the Dasgupta Reviews, on the economics of climate change and biodiversity respectively, were commissioned by the Treasury. Its Net Zero Review will also be published later in 2021. 5.3 At spending reviews, departments are required to assess the costs and benefits of their proposals – including climate and environmental impacts – following the framework set out in the Green Book. Treasury spending teams consider these impacts when assessing the strategic importance and value for money of any proposal. 5.4 HM Treasury continuously improves the Green Book in line with the latest scientific evidence. In 2018, the Green Book and its supplementary guidance were revised with support from the Natural Capital Committee to require more comprehensive appraisal of environmental impacts following a natural capital approach. Resources such as Defra’s Enabling a Natural Capital Approach (ENCA) make data, guidance and tools available to support policymakers. The Treasury is also currently conducting an expert-led review of the environmental discount rate. 5.5 Spending Review 2020 guidance required departments to include the greenhouse gas emissions of bids, and their impact on meeting Carbon Budgets and Net Zero. Guidance also sought qualitative commentary on the impact of delivery of the 25 Year Environment Plan. HM Treasury is currently reviewing the learning from this exercise and considering what additional information should be published following the next spending review to support public understanding of the role the Treasury plays in meeting government’s environmental objectives.